Ramgopal Prajapat:

Learnings and Views

Role of Personalization in Ecommerce

By: Ram on Jul 11, 2022

Personalization can be a powerful lever to deliver on key business metrics – CTR % or Add to Cart or Conversion % for ecommerce company.  And the personalization can be leveraged across touch points on the ecommerce app/website (calling it platform) and off the platform.

On Ecommerce Platform

  • Showing themes/layout when a customer come to a platform
  • Recommending products or showing the sequence of categories based on customer’s interest

Based on Search and Browsing History Based

Category Recommendations – There are huge list of categories to pick up and it can be done using personalization along with the prioritization of business outcomes.

  • When a customer is searching for products, it shows the products personalised to customer’s interest – e.g., one customer may prefer a particular brand irrespective of the product prices. Another customer may be searching for same search key words but is price conscious, so better to show the products based on his/her personal needs.

Off Ecommerce Platform: Acquisition Personalization

These could be prospective customers and the level of personalization could be at a different level. Based on the Target Groups (TGs), the relevant offers, communications and creatives can be shown.

Two examples of Target Groups for Luxury Business

  • TG 1 – Working executives from tier 1 cities
  • TG 2 - Ladies from business families from Tier 2 Cities

The type of creatives and messaging can be significantly different.

Off Ecommerce Platform: CRM and Communication

Ecommerce companies reach out to the customers for communicating of new arrivals, discounts, and promotions.  There can be hundreds of new arrivals across brands and price ranges, so it is important to select the right brand, and product for the campaigns.  Also, the channel preference and good time of the day could vary significantly across customers.

  • Personalised Product, Brand selections for email campaigns
  • Communication and Creative Personalization

 

But it is not evident from the output in terms of the level personalization done.  In the future blogs, we will talk about the foundational structured to deliver on the personalization and the algorithms driving these.

 

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